Alabama Attorney General Opinion 1979-0174

OFFICE OF THE ATTORNEY GENERAL tn-00/0 4110- CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA APR 26 1979 (205) 832-5640 HERBERT I. BURSON. JR. B. FRANK LOEB PHILIP C. DAVIS RON BOWDEN JOHN J. BRECKENRIDGE WILLIAM L. THOMPSON Assistant Attorneys General Revenue Department LEE L. HALE DEPUTY ATTORNEY GENERAL WILLIAM M. BEKURS, JR. EXECUTIVE ASSISTANT WALTER S. TURNER CHIEF ASSISTANT ATTORNEY GENERAL JANIE NOBLES ADMINISTRATIVE ASSISTANT ADMINISTRATIVE BU moino 54 NORTH UNION STREET MONTGOMERY, ALABAMA 5E130 Honorable Richard H. Poellnitz Attorney for Hale County Hospital P. O. Box 431 Greensboro, Alabama 36744 Hospitals - Hale County County may operate ambulance service; County Hospital may operate ambulance service. Dear Mr. Poellnitz: Your request for an opinion dated March 19, 1979 is as follows: "In April, 1961 a special county election was held in Hale County, Alabama pertaining to a special county tax. The question submitted to the voters of Hale County was as follows: 'Shall the County of Hale be authorized to levy annually, commencing with the levy for the tax year of the county beginning October 1, 1961, for which tax year the taxes authorized by law a special county tax, not exceeding 4 mills on each dollar of the assessed valuation of the taxable property in the county, to be used solely for acquiring, by purchase, lease, or otherwise, constructing, operating, equipping, or maintaining county hospitals, or other public hospitals, non-profit hospitals and public health facilities.' "The voters voted for the taxation and the tax has been levied each February by the Board of Revenue. Hospital bonds were sold and the revenue from this tax was used to pay said bonds and through 1978 the said tax was paid -2- "direct to the hospital. Commencing in the year 1968 the tax was annually levied at 3 mills instead of 4 mills. The County Hospital was incorporated in the summer of 1961 under authority of Act #46 of the 1949 Session of Legislature. Since the Hale County Hospital was in- corporated as a County Hospital in 1961 it has con- tinuously been run as a hospital and is run this day as a County Hospital. "This February, 1979 the Board of Revenue levied the tax as follows: 'BE IT RESOLVED BY THE HALE COUNTY COMMISSION as follows: That there be and hereby is levied upon all taxable property of Hale County a special tax of 3 mills on each dollar of the assessed valuation of said taxable property, 2 mills of which is to pay cost of acquiring, construc- tion, equipping and maintaining a County Hospital and for payment of the principal and interest on bonds which may be issued for any of said property and 1 mill on each dollar of assessed valuation of said taxable property to pay cost of operating other related public health facili- ties of any kind. (3 mills).' "The first question we would like to submit is your inter- pretation of the Code of 1975, Section 22-21-102 which deals with the collection and expenditure of the hospital tax. In other words was this hospital tax in 1961 voted in whereby it was earmarked for the hospital or can the County Board of Revenue withhold 1 mill and use for re- lated public health facilities? "The second question is can Hale County, through its Board of Revenue, legally operate an ambulance service for the people of Hale County, Alabama? This service is being operated through a manager whom the Board of Revenue has hired and deficits from the operation have come from the County General Fund under the supervision of the Board of Revenue. "The third question is can the County Hospital legally operate the ambulance service and in so operating use the funds derived from the hospital tax for the capital outlay and expenditures of the business?" In answer to your first question, it is clear that the County Board of Revenue may withhold 1 mill for use in related public health facilities. The voters of Hale County authorized the county to use the proceeds from the special tax for public health facilities other than the Hospital in the election held in 1961. Furthermore, the Resolution passed by the County Commission under the authority of the 1961 election provides that 1 mill on each dollar of assessed valuation of the taxable property in the county is to pay the cost of ope- rating other public health facilities of any kind. -3- Your second question is answered in the affirmative. Section 11-87-1, et seq., Code of Alabama 1975. Your third question is answered in the affirmative. The voters of Hale County in 1961 authorized a special tax to be used to construct, operate and maintain a County Hospital. Pursuant to the authority granted by the people of Hale County in the election of 1961, the Hale County Commission passed a Resolution in February, 1979, levying a 2 mill tax to be used for the maintenance of a County Hospital. It is my opinion that the maintenance of an ambulance service constitutes a legitimate and integral function of the County Hospital. Therefore, any tax money which may be used for the Hospital may also be used for the ambulance service, as the ambulance service is a part of the operation of the Hospital. (Quarterly Report of the Attorney General, Volume 126, page 46). Sincerely, CHARLES A. GRADDICK Attorney General BY- RON BOWDEN Assistant Attorney General RB:mr